You may have heard the term Plevin used in relation to PPI claims, but what exactly does it mean and how does it affect you? Below, we outline what the Plevin PPI rule is and how to make a claim before the impending deadline.
Remember, starting your PPI claim is easy with a no-win, no-fee PPI claims company, which will be able to identify any mis-sold PPI and make a claim on your behalf.
Who Is Mrs Plevin?
In 2014, Mrs Plevin launched a PPI case against Paragon Personal Finance. During the case, it was discovered that the bank made 71% in commission on Mrs Plevin’s PPI policy. Although Mrs Plevin wanted PPI at the time, she was not aware that such a high percentage of the fee was a commission.
This case went to the Supreme Court, which ruled that this constituted a type of mis-selling. As a result, the lender had to pay Mrs Plevin a refund and compensation for the high percentage of commission.
What Are Plevin Rules?
After Mrs Plevin’s case, the Financial Conduct Authority (FCA) reviewed its guidelines on PPI claims. It ruled that any sale of a PPI policy where the commission was above 50% can be a form of mis-selling.
An individual can make a PPI claim under the Plevin rule if:
- Over 50% of the PPI sale was a commission
- This was not disclosed at the time of purchase
- The credit card, loan, mortgage or other financial product was taken out before 6 April 2007, but was still open on or after 6 April 2008.
If you have previously made a PPI claim that was unsuccessful, you can claim again citing the Plevin rule, which means there could still be a chance for success. If you have already made a successful claim, you cannot make a new claim under Plevin.
Making a PPI Plevin Claim: Do It Yourself or Use a No-Win, No-Fee PPI Claims Company
If you want to make a PPI claim under the Plevin rule, the process is exactly the same as making a traditional PPI claim. However, you must state that the reason you are making your claim is because of the high level of commission.
There are two ways to make a PPI claim: you can either contact the bank yourself or use the services of a trustworthy PPI claims company.
Making a PPI claim yourself is free, but you will need to find evidence of PPI and contact the bank or lender with all the relevant information that shows you were mis-sold PPI. Alternatively, a PPI claims company will do all the work for you, including finding any evidence of PPI and contacting the bank on your behalf.
Recent regulations mean PPI claims companies cannot charge more than 20%+VAT on successful claims. All companies should also operate on a no-win, no-fee basis. This means that, if the bank does not uphold your PPI claim, you will not owe any money to the PPI claims company for the work it has done.
If you had a mortgage, loan, or credit card between 1990 and 2010, it’s likely that you were mis-sold PPI. However, the Plevin rule means that, even if you remember buying PPI, you can still make a claim. During the time that PPI was mis-sold, many banks made 67% commission on every sale.
The Financial Conduct Authority (FCA) has set a deadline of 29th August 2019, meaning your must contact your bank or a PPI claims company before this date.
The banks have already paid almost £32 billion to consumers over the past eight years and much more is expected to be paid out before the cut-off date — don’t delay your claim.